Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

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Want.Need.Plan
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Joined: Sat Jun 27, 2020 6:56 pm

Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Mon Jun 29, 2020 10:54 pm

HI ALL :sharebeer DO NOT GO GENTLE ON US :sharebeer (like others state) Please be as blunt as possible.


Overall goal is to have our house paid off in 15 years right when our kids go to college…. Which then frees up $3K a month to help cash flow a portion of college. Also have 529 plans which we are contributing to and will continue to increase the contributions. Including Mtg, monthly expenses are around $7K. We also set aside project money which amount to $5-7K a year for various projects around the house… Deck, patio, shed etc. Total annual expenses of $84K.

$67K Max Retirement savings (Roth + 401K+ Match + HSA). Also receive a 15% discount on our employee stock purchase plan (put 6% of salary toward). Never hold the company stock for very long to lock in the 15%+ gain and then use the processed to fund our non retirement account. ($9-12K year)

Next goal is be able (not that we prob will) retire at 55. God willing, even if we make nothing, we will have $1.7M in 24 years however I am estimating we will have a conservative $5.5M at 55 years old. House will be paid off.. $50K a year in today dollars for expenses.. Think this is do able?

Emergency funds:
$23K in Checking
$2K in HSA (Cash Portion)
==$25K
(Monthly expenses including Mtg = $7K / Month)

Debt: Mtg recently refinanced to a 15 year fixed at 2.625% = $340K – LTV of 50%

Tax Filing Status: Married Filing Jointly

Tax Rate: 22% Tax Bracket 11.38% Effective tax rate) Federal, 5.05% State

State of Residence: MA

Age: 31 / 32

Desired Asset allocation: 90% stocks / 10% bonds (No one dies while riding a roller coaster... unless you jump off mid way through)
Desired International allocation: 10-15% of stocks

Currently have $70K at Merrill Edge** in a non retirement account. apologize in advance for the mess in this account. Was sold a Signature Portfolio from a friend of mine paying 1.2% for a mess of ETFS and Mutual funds. Would really like some suggestions to clean this up. We also hold $53K in a high yield CITI account (currently 1.2%)

Have $235K in retirement accounts with $212K in traditional IRA, $19K in Roth IRA, $4K in 529 plans.

Currently invest 6% of salary in the company’s employee stock purchase plan which provides a 15% discount and is held twice a year. Quick $2K in gains each year.


Current retirement assets

Taxable- $113K
CASH :moneybag
45%- $53K in High Yield Savings account (Citi Current APR 1.2%)

Large Cap US - BLEND
11%- $13K iShares S&P 500 Index (IVV) (0.04%)- BLEND
4%- $4K T. Rowe Price U.S. Equity Research Fund (PRCOX) (0.69%)- BLEND
3%- $3K SPDR S&P 500 ETF Trust (SPY) (0.09%)-BLEND
3%- $3K Oakmark Select Fund Investor Class (OAKLX) (0.96%)- BLEND

Large Cap US - GROWTH
3%- $3K Vanguard Information Technology ETF (VGT) (0.1%)- GROWTH
2%- $2K First Trust EXCHANGE/DOW JONES INTERNET INDEX (FDN) (0.52%)- GROWTH
2%- $2K GLB X FUNDS/ROBOTICS & ARTIFICI (BOTZ) (0.68%)- GROWTH
1%- $1K SPDR Nyse Technology ETF (XNTK) (0.57%)- GROWTH

Large Cap US - VALUE
1%- $1K PIMCO CommoditiesPLUS (PCLPX) (0.84%)- VALUE
<1%- <$1K PROSHARES TR/S&P 500 DIVID ARIST (NOBL) (0.35%)- VALUE

Mid Cap US
2%- $2K iShares Core S&P Mid Cap ETF (IJH) (0.07%)
2%- $2K Parnassus Mid Cap Fund Institutional (PFPMX) (0.75%)
<1%- <$1K Cohen & Steers Real Estate Securities (CSDIX) (0.87%)
<1%- <$1K DWS Enhanced Commodity Strategy (SKIRX) (0.99%)

Small Cap US
2%- $2K Goldman Sachs International Small Cap (GICIX) (0.90%)
1%- $1K iShares S&P SmallCap 600 Index (IJR) (0.07%)
2%- $2K Vector Group Ltd (VGR)

International
5%- $7K SCHWAB STRATEGI/INTL EQUITY ETF (SCHF) (0.06%)
4%- $5K VANGUARD WORLD/VANGUARD MEGA CAP GROWTH (MGK) (0.07%)
2%- $2K Vanguard Emerging Markets Stock Index (VWO) (0.14%)
2%- $2K American Funds New World Fund® Class (NFFFX) (0.75%)

Bond
3%- $3K VANGUARD MUN BD/TAX-EXEMPT BD (VTEB) (0.09%)
2%- $2K Strategic Municipal Opportunities Fund(MAMTX) (0.57%)

Other
<1%- <$1K iShares Gold Trust (IAU) (0.25%)

His 401k- $90K ***(‘C)
26%- T Rowe Price Retirement I 2050 Fund - Class I (TRRMX) (0.71%)- US LARGE BLEND
2% State Street S&P 500 Index Securities Lending Series Fund - Class VI (SVSPX) (0.16%) US LARGE BLEND

18% JPMorgan Equity Income Fund - Class R6 (OIEJX) (0.49%) US LARGE VALUE

54%- Goldman Sachs Small/Mid Cap Growth Fund - Institutional Class (GSMYX) (0.94%) US MID GROWTH

His Roth IRA at ML = $12K
27% Invesco QQQ Trust Series 1 (QQQ) (0.2%) US LARGE GROWTH
23% Vanguard 500 Index Fund (VOO) (0.04%) US LARGE BLEND
17% American Funds Growth Fund of America (AGTHX) (0.64%) US LARGE GROWTH
16% American Funds AMCAP (AMCPX) (0.67%) US LARGE GROWTH
15% American Funds Investment Co of America (AIVSX) (0.57%) US LARGE BLEND
2% Vanguard Value Index Fund (VTV) (0.05%) US LARGE Value

His Rollover IRA at NWM-$28K

All of the following are in a Variable Life Insurance Fund.. Yes I know.. I have been sold a bag of expensive garbage.

Equity Income (MSA/T Rowe Price)-B
Neuberger Berman Sustainable Equity-B
Fidelity VIP Contrafund-B
FocusedAppreciation(MSA/LoomisSayles)-
Mid Cap Value(MSA/Amer Century)-B
Fidelity VIP Mid Cap-B
Small Cap Value (MSA/T Rowe Price)-B
Research International Core (MSA/MFS)-B
International Eq (MSA/Franklin Tmpl)-B
International Growth (MSA/FIAM LLC)-B
Emerging Mkts Equity (MSA/Aberdeen)-B
Select Bond (MSA/Wells Capital Mgmt)-B
Strategic Bond (RIF)-
Inflation Protect (MSA/Amer Century)-B
Multi Sector Bond (MSA/PIMCO)-B
High Yield Bond (MSA/Federated Inv.)-B
Global Real Estate Securities (RIF)-B
Credit Suisse Commodity Strategy-B

HIS HSA’- $2K

30% T.Rowe Price Blue Chip I US LARGE GROWTH
70% Vanguard 500 Index - A US LARGE BLEND

Her 403b-- $86K

BOND
1% Pioneer Short Term Income Y (PSHYX) (0.46%)
2% Fidelity U.S. Bond Index (FXNAS) (0.03%)
3% Metropolitan West Total Return Bond Plan (MWTSX) (0.37%)
2% BlackRock Inflation Protected Bond K (BPLBX) (0.45%)
1% Templeton Global Bond R6 (FBNRX) (0.57%)

US LARGE GROWTH
24% American Funds Washington Mutual R6 (RWMGX) ( 0.27%)
27% MFS Massachusetts Investors Gr Stk R6 (MIGNX) (0.38%)

US LARGE BLEND
7% ClearBridge Appreciation IS (LMESX) (0.57%)
11% Fidelity 500 Index (FXAIX) (0.01%)
7% Parnassus Core Equity Instl (PRILX) (0.63%)

Mid Cap US
2% Vanguard Selected Value Inv (VASVX) (0.33%)
3% Fidelity Extended Market Index (FSMAX) (0.04%)
4% Carillon Eagle Mid Cap Growth A (HAGAX) (1.05%)

Small Cap US
2% Victory Sycamore Small Company Opp R6 (VSOBX) (0.87%)

International
3% American Funds EuroPacific Gr R6 (RERGX) (0.49%)
1% Fidelity Total International Index (FTIHX) (0.06%)

Her Roth IRA at ML = $7K
100% AMERICAN FUNDS 2055 TARGET DATE-A (AAMTX) (0.74%) US LARGE GROWTH

529 Plans
2 plans for each child- $5000 total with Fidelity Mix—MA Portfolio 2036 Fidelity Blend (0.93%) ** Will be switching to the Fidelity Index which has 0.14%

Term Life Insurance
$1M Him and $500K Her (Company also is 2X Salary for Him and 1X Her)


Contributions

New annual Contributions
$19500 his 401k (3% = $4500)
$19500 her 403b (6% = $4800)
$6000 his IRA/Roth IRA
$6000 her IRA/Roth IRA
$7100 His HAS’
$12000 taxable (for retirement, not short term goals)
$2400 to 529 plans

Available funds

Funds available in his 401(k)
Vanguard Federal Money Market Fund - Investor Class (VUSXX) (0.11%)
Eaton Vance Short Duration Government Income Fund - Class I (EALDX) (0.85%)
Pioneer Bond Fund - Class Y (PICYX) (0.46%)
Pioneer Strategic Income Fund - Class Y (STRYX) (0.73%)
AB High Income Fund - Advisor Class (AGDYX) (0.62%)
PIMCO Real Return Fund - Institutional Class (PRRIX) (0.98%)
BNY Mellon Global Fixed Income Fund - Class Y (DSDYX) (0.45%)
All other T Rowe Funds 2005-2060 Class I
American Funds American Balanced Fund - Class R6 (RLBGX) (0.26%)
TIAA-CREF Large Cap Growth Index Fund - Retirement Class (TILGX) ( 0.42%)
State Street S&P MidCap Index Non-Lending Series Fund - Class F (SSMHX) (0.3%)
Diamond Hill Mid Cap Fund - Class Y (DHPYX) (0.65%)
Undiscovered Managers Behavioral Value Fund - Class R5 (UBVVX) (0.9%)
Oakmark International Fund - Investor Class (OAKIX) (0.98%)
American Funds Capital World Growth and Income Fund - Class R6 (RWIGX) ( 0.42%)
Invesco Oppenheimer Developing Markets Fund - Class R6 (ODVIX) (0.83%)
Vanguard Materials Index Fund - Admiral Class (VMIAX) (0.1%)

Funds available in her 403(b)
Vanguard Treasury Money Market Inv (VUSXX) (0.09%)
Transamerica Capital Preservation Option (TLIC)


Questions:
A- We both have stable job (CPA and Pharmacist) and good credit so my first question is should we take some or all of the $53K in savings and dump it into a fund to get a larger return? Have a fairly new home (7 years old) so big unexpected expenses shouldn’t come up shortly. Cars are getting older (7/8 years), but are in good condition… a $1K her or there car expense wont break anything as we have no other debt. Thoughts here?

B- Inherited a part of the “advisor” fund… looking to sell and buy index fund. Suggestions? Keep and ride out? Any others would you cut? Would also like to clean shop vs keeping this basket.

C- Thinking to change this to 25% TRRMX, 25% SVSPX, 25% GSMYX and 25% TILGX.. Thoughts or other allocations to review?

D- Finally any other general items you see? Too many funds.. sell all tomorrow and buy XXX XXX and XXX? Spend more? Save Less?

Appreciate your time!
Want.Need.Plan
Last edited by Want.Need.Plan on Tue Jun 30, 2020 9:18 pm, edited 2 times in total.

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Cubicle
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Cubicle » Mon Jun 29, 2020 11:06 pm

I'm going to be blunt. I can't process the dumpster fire you have. In everything tax advantaged, sell everything & put it into 1-3 broad index fund with a low expense ratio. You cannot manage 20 funds. Once that is done, then assess what allocations you want. In taxable accounts sell anything with a loss.

If your ER fund is adequate, then I would invest the $53,000.

What's the expense ratio on the advisor fund? That will determine what to do with it.
"Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

marcopolo
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by marcopolo » Mon Jun 29, 2020 11:14 pm

I second the dumpster fire comment above.

What are you hoping to accomplish with a fund in which you have 1% or 2% (or less in some case) of your portofolio?!?

Congratulations on having such a high level of savings, and getting started at a relatively early age.

I would second the recommendation to simplify your portfolio. You can do it painlessly in tax-advantaged accounts, the taxable account will take some more thought.

Keep saving at high rate and focus on building your careers, the easiest way to achieve early retirement is to increase your income relative to spending needs.

Good luck to you.
Once in a while you get shown the light, in the strangest of places if you look at it right.

retired@50
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by retired@50 » Mon Jun 29, 2020 11:19 pm

It's nearly incomprehensible.

All I can suggest is you think about assets in one of three broad categories.
U.S. Stock.
International Stock.
U.S. Bonds.

Once you manage to label each fund you own with one of those categories, then you can work on converting them to the Boglehead three fund portfolio. Please read the wiki on this important topic to help simplify your portfolio and your life. There is simply nothing to be gained by owning over 30 or 40 funds. It's not diversification, it's complexity.

https://www.bogleheads.org/wiki/Three-fund_portfolio

Regards,
This is one person's opinion. Nothing more.

SnowBog
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by SnowBog » Mon Jun 29, 2020 11:20 pm

I'll let others weigh in on me detailed advice, but initial thoughts...

Recommend changing the subject (edit your original post), all caps is frowned upon... There's also a format for these portfolio reviews that may make make it easier to review. Search the wiki (or someone will likely post the link).

I didn't see you mention if you have an emergency fund (and if that's part of the listed balances). Generally the recommendation is to have 6+ months of expenses set aside to ride out life's bumps. That will drive what to do with your cash...

Few other thoughts of things I wish I knew years ago:
  • Does your 6% ESPP max out for the year ($25k IIRC)? If not, you may want to think of increasing if possible to max out, even if the difference is just returned to "checking". If you can sell immediately, the 15% discount is great "free money".
  • Check to see if either of your retirement plans allow for "after tax" contributions (otherwise known as the Mega Backdoor Roth). Great benefit if you have access.
  • Check to see if you have access to any self directed investment options in your retirement accounts. If you're accounts are at Fidelity, this would be called a BrokerageLink account. This may require more paperwork to setup, but if you have access, it basically let's you invest in anything you want - not limited to the pre-selected options in your plan.
  • Because they are tax advantaged, you basically can change investments at any time in non-taxable accounts without tax impact. (I held onto my "old funds" far too long thinking I'd have an impact if I sold).
  • Simple is good. You're investments don't need to be complicated.
Best of luck.

Bama12
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Bama12 » Mon Jun 29, 2020 11:21 pm

I thought I had a lot of funds,ets and stocks.

I'm not even going to drive into all of this. I would cut this in half.

Why so many of the same class? I think, I counted 4 mid cap funds?

TheDDC
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by TheDDC » Mon Jun 29, 2020 11:23 pm

Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.

-TheDDC
Rules to wealth building: 90-100% VTSAX piled high and deep, 0-10% VIGAX tilt, 0% given away to banks, minimize amount given to medical-industrial complex

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WoodSpinner
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by WoodSpinner » Mon Jun 29, 2020 11:25 pm

OP,

For your taxable funds, can you breakdown which have capital gains, which have losses?

You have way too many funds, they overlap and have high expense ratios. Would love to sell them in a tax efficient manner and shift to a small subset of low cost index funds.

Good news is you have a good savings rate!

Glad you posted and asked, hope we can be of help.

WoodSpinner

SnowBog
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by SnowBog » Mon Jun 29, 2020 11:28 pm

One other thought...

Assuming your taxable acount has gains...

May want to look at UTMA accounts for your kids. You can "gift" them appreciated shares, which can then be sold in their accounts likely at less tax.

I did this to help unwind some holdings in my taxable with high gains.

Make sure you understand the Kiddie Tax thresholds, and understand that once gifted the money is your child's (you can't get it back). UTMA can also negatively impact college financial aid.

So do your due diligence, but might be something to consider...

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sergeant
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by sergeant » Mon Jun 29, 2020 11:56 pm

What a mess! I would pick one Target Date Fund with the appropriate asset allocation (2050) in each and every account and be done with it.

All Caps is yelling. It isn't polite to yell at folks who just want to help.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.

RocketShipTech
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by RocketShipTech » Tue Jun 30, 2020 12:14 am

TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.
Roughly half of that is housing cost. A consequence of choosing the 15 year mortgage.

$40k/yr in ex-housing cost does not sound exorbitant to me, especially for a couple who could be making >$200k gross.

palanzo
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by palanzo » Tue Jun 30, 2020 12:51 am

I will be blunt ask you asked.

First thing is to change the title. Please do not use ALL CAPS.

Second thing is that fortunately only 60K of taxable is invested in that mess. I would reply and list all the funds with long term capital losses and those funds with long term capital gains, along with the amounts. We can then provide suggestions on how to dispose of the mess in taxable. Do you have any other capital losses from previous years? You may want to consider selling even if you incur a capital gain (and pay the taxes) because you have funds with very high expense ratios in taxable and furthermore you have funds that are completely unsuitable for a taxable account e.g. Cohen & Steers Real Estate Securities (CSDIX) and PIMCO CommoditiesPLUS (PCLPX). If you follow the advice that you will receive here you will end up with efficient index funds in taxable.

Third thing is never take advice from your "friend" again.

Good luck and keep replying.

marcopolo
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by marcopolo » Tue Jun 30, 2020 1:16 am

TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.


-TheDDC
Seriously?

3K is the mortgage, and the OP has kids.

Is it really that hard for people to imagine that other people may live their lives differently than themselves?
Once in a while you get shown the light, in the strangest of places if you look at it right.

hnd
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by hnd » Tue Jun 30, 2020 9:04 am

its pretty amazing how expensive kids are.

regarding the portfolio, if you are going to be managing it yourself, it would behoove you to simplify it down. when i began this journey of self investing I rolled an old work SIMPLE into a roth, I created a plan that was simple enough. 30% US index, 20% US index growth, 20% international, 20% Target Date, and 10% bonds. what happened next was insane. I built a portfolio of 30+ mutual funds and etfs. I kept expenses low but didn't take into consideration turnover and overlap. over the past few years i've begun transitioning these into simpler accounts.

I try and allocate about 10% of my portfolio to the those funds/etfs/stocks that don't necessarily meet the 3 fund mantra. some are a bit nutty some are expensive but perform. It takes care of my need to meddle but isn't affecting my core investments on a larger scale.

Mustang8307
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Mustang8307 » Tue Jun 30, 2020 9:07 am

marcopolo wrote:
Tue Jun 30, 2020 1:16 am
TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.


-TheDDC
Seriously?

3K is the mortgage, and the OP has kids.

Is it really that hard for people to imagine that other people may live their lives differently than themselves?
Agreed. We spend $3k per month just on daycare and formula each month. Costs are high with young kids.

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Nate79
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Nate79 » Tue Jun 30, 2020 9:25 am

I think you got good recommendations so far and I'll just add that I would double your emergency fund - it's pretty weak at best 3 months.

tashnewbie
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by tashnewbie » Tue Jun 30, 2020 10:05 am

I agree with others - you have a bit of a dumpster fire here with all of the funds. I would reduce the 401k, 403b, and IRAs down to 2-3 index funds NOW. You can do that without any immediate tax consequences. Wife has some good options for US Stock, International Stock, and US bonds in her 403b. I'd probably allocate your entire desired bond allocation in her 403b, to the extent possible. Use the S&P 500 index fund in his 401k for US Stock.

Then you'll have to tackle the taxable account over time if you want to be as tax-efficient as reasonably possible. I would stop automatic reinvestment of dividends and capital gains NOW. Then look at the specific lots of funds with ERs >0.4% to see if any have losses. If they do, I'd probably sell them now. Then see if any of the higher ER funds have any gains. See if you can offset gains with the losses. It may take years to unwind all of this.

I think your ER (<4 months) is a little slim, especially given the monthly expenses and 2 kids. If there's some flexibility with your monthly expenditure, then it might not be as important to fortify the EF, but I would think about allocating some of the Citibank HYSA as an EF, possibly all of it, which would put you at ~11 months of expenses (I'm not counting the $2k cash in your HSA, which could be used to reimburse yourself for past or future medical expenses). Where is your current EF kept? Is it mixed in the Citi account?

Great job on the savings!

ETA: I would think about moving your IRAs to a different custodian like Fidelity, Schwab, E-Trade, or Vanguard, and getting out of NWM and any actively managed products.

Ferdinand2014
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Ferdinand2014 » Tue Jun 30, 2020 10:14 am

Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
HI ALL DO NOT GO GENTLE ON US (like others state) Please be as blunt as possible.


Overall goal is to have our house paid off in 15 years right when our kids go to college…. Which then frees up $3K a month to help cash flow a portion of college. Also have 529 plans which we are contributing to and will continue to increase the contributions. Including Mtg, monthly expenses are around $7K. We also set aside project money which amount to $5-7K a year for various projects around the house… Deck, patio, shed etc. Total annual expenses of $84K.

$67K Max Retirement savings (Roth + 401K+ Match + HSA). Also receive a 15% discount on our employee stock purchase plan (put 6% of salary toward). Never hold the company stock for very long to lock in the 15%+ gain and then use the processed to fund our non retirement account. ($9-12K year)

Next goal is be able (not that we prob will) retire at 55. God willing, even if we make nothing, we will have $1.7M in 24 years however I am estimating we will have a conservative $5.5M at 55 years old. House will be paid off.. $50K a year in today dollars for expenses.. Think this is do able?

Emergency funds:
$23K in Checking
$2K in HSA (Cash Portion)
==$25K
(Monthly expenses including Mtg = $7K / Month)

Debt: Mtg recently refinanced to a 15 year fixed at 2.625% = $340K – LTV of 50%

Tax Filing Status: Married Filing Jointly

Tax Rate: 22% Tax Bracket 11.38% Effective tax rate) Federal, 5.05% State

State of Residence: MA

Age: 31 / 32

Desired Asset allocation: 90% stocks / 10% bonds (No one dies while riding a roller coaster... unless you jump off mid way through)
Desired International allocation: 10-15% of stocks

Currently have $70K at Merrill Lynch in a non retirement account. apologize in advance for the mess in this account. Was sold a Signature Portfolio from a friend of mine paying 1.2% for a mess of ETFS and Mutual funds. Would really like some suggestions to clean this up. We also hold $53K in a high yield CITI account (currently 1.2%)

Have $235K in retirement accounts with $212K in traditional IRA, $19K in Roth IRA, $4K in 529 plans.

Currently invest 6% of salary in the company’s employee stock purchase plan which provides a 15% discount and is held twice a year. Quick $2K in gains each year.


Current retirement assets

Taxable- $113K
45%- $53K in High Yield Savings account (Citi Current APR 1.2%) *** (A)
11%- $13K iShares S&P 500 Index (IVV) (0.04%)
5%- $7K SCHWAB STRATEGI/INTL EQUITY ETF (SCHF) (0.06%)
4%- $5K VANGUARD WORLD/VANGUARD MEGA CAP GROWTH (MGK) (0.07%)
4%- $4K T. Rowe Price U.S. Equity Research Fund (PRCOX) (0.69%)
3%- $3K VANGUARD MUN BD/TAX-EXEMPT BD (VTEB) (0.09%)
3%- $3K SPDR S&P 500 ETF Trust (SPY) (0.09%)
3%- $3K Vanguard Information Technology ETF (VGT) (0.1%)
3%- $3K Oakmark Select Fund Investor Class (OAKLX) (0.96%)*** (B)
2%- $2K Vanguard Emerging Markets Stock Index (VWO) (0.14%)
2%- $2K iShares Core S&P Mid Cap ETF (IJH) (0.07%)
2%- $2K American Funds New World Fund® Class (NFFFX) (0.75%)*** (B)
2%- $2K Fidelity Advisor® Intermediate Municipal (FZIIX) (0.44%)
2%- $2K First Trust EXCHANGE/DOW JONES INTERNET INDEX (FDN) (0.52%)
2%- $2K Parnassus Mid Cap Fund Institutional (PFPMX) (0.75%)*** (B)
2%- $2K Goldman Sachs International Small Cap (GICIX) (0.90%)*** (B)
2%- $2K GLB X FUNDS/ROBOTICS & ARTIFICI (BOTZ) (0.68%)
2%- $2K Strategic Municipal Opportunities Fund(MAMTX) (0.57%)
1%- $1K SPDR Nyse Technology ETF (XNTK) (0.57%)
1%- $1K iShares S&P SmallCap 600 Index (IJR) (0.07%)
1%- $1K PIMCO CommoditiesPLUS (PCLPX) (0.84%)
<1%- <$1K PROSHARES TR/S&P 500 DIVID ARIST (NOBL) (0.35%)
<1%- <$1K iShares Gold Trust (IAU) (0.25%)
<1%- <$1K Cohen & Steers Real Estate Securities (CSDIX) (0.87%)*** (B)
<1%- <$1K DWS Enhanced Commodity Strategy (SKIRX) (0.99%)*** (B)

2%- $2K Vector Group Ltd (VGR)

His 401k- $90K ***(‘C)
26%- T Rowe Price Retirement I 2050 Fund - Class I (TRRMX) (0.71%)
18% JPMorgan Equity Income Fund - Class R6 (OIEJX) (0.49%)
[b]2% State Street S&P 500 Index Securities Lending Series Fund - Class VI (SVSPX) (0.16%)[/b]
54%- Goldman Sachs Small/Mid Cap Growth Fund - Institutional Class (GSMYX) (0.94%)

His Roth IRA at ML = $12K
27% Invesco QQQ Trust Series 1 (QQQ) (0.2%)
23% Vanguard 500 Index Fund (VOO) (0.04%)
17% American Funds Growth Fund of America (AGTHX) (0.64%)
16% American Funds AMCAP (AMCPX) (0.67%)
15% American Funds Investment Co of America (AIVSX) (0.57%)
2% Vanguard Value Index Fund (VTV) (0.05%)

His Rollover IRA at NWM-$28K

All of the following are in a Variable Life Insurance Fund.. Yes I know.. I have been sold a bag of expensive garbage.

Equity Income (MSA/T Rowe Price)-B
Neuberger Berman Sustainable Equity-B
Fidelity VIP Contrafund-B
FocusedAppreciation(MSA/LoomisSayles)-
Mid Cap Value(MSA/Amer Century)-B
Fidelity VIP Mid Cap-B
Small Cap Value (MSA/T Rowe Price)-B
Research International Core (MSA/MFS)-B
International Eq (MSA/Franklin Tmpl)-B
International Growth (MSA/FIAM LLC)-B
Emerging Mkts Equity (MSA/Aberdeen)-B
Select Bond (MSA/Wells Capital Mgmt)-B
Strategic Bond (RIF)-
Inflation Protect (MSA/Amer Century)-B
Multi Sector Bond (MSA/PIMCO)-B
High Yield Bond (MSA/Federated Inv.)-B
Global Real Estate Securities (RIF)-B
Credit Suisse Commodity Strategy-B

HIS HSA’- $2K

30% T.Rowe Price Blue Chip I
70% Vanguard 500 Index - A

Her 403b-- $86K
1% Pioneer Short Term Income Y (PSHYX) (0.46%)
2% Fidelity U.S. Bond Index (FXNAS) (0.03%)
3% Metropolitan West Total Return Bond Plan (MWTSX) (0.37%)
2% BlackRock Inflation Protected Bond K (BPLBX) (0.45%)
1% Templeton Global Bond R6 (FBNRX) (0.57%)
24% American Funds Washington Mutual R6 (RWMGX) ( 0.27%)
7% ClearBridge Appreciation IS (LMESX) (0.57%)
11% Fidelity 500 Index (FXAIX) (0.01%)
7% Parnassus Core Equity Instl (PRILX) (0.63%)
27% MFS Massachusetts Investors Gr Stk R6 (MIGNX) (0.38%)
2% Vanguard Selected Value Inv (VASVX) (0.33%)
3% Fidelity Extended Market Index (FSMAX) (0.04%)
4% Carillon Eagle Mid Cap Growth A (HAGAX) (1.05%)
2% Victory Sycamore Small Company Opp R6 (VSOBX) (0.87%)
3% American Funds EuroPacific Gr R6 (RERGX) (0.49%)
]1% Fidelity Total International Index (FTIHX) (0.06%)

Her Roth IRA at ML = $7K
100% AMERICAN FUNDS 2055 TARGET DATE-A (AAMTX) (0.74%)

529 Plans
2 plans for each child- $5000 total with Fidelity Mix—MA Portfolio 2036 Fidelity Blend (0.93%) ** Will be switching to the Fidelity Index which has 0.14%

Term Life Insurance
$1M Him and $500K Her (Company also is 2X Salary for Him and 1X Her)


Contributions

New annual Contributions
$19500 his 401k (3% = $4500)
$19500 her 403b (6% = $4800)
$6000 his IRA/Roth IRA
$6000 her IRA/Roth IRA
$7100 His HAS’
$12000 taxable (for retirement, not short term goals)
$2400 to 529 plans

Available funds

Funds available in his 401(k)
Vanguard Federal Money Market Fund - Investor Class (VUSXX) (0.11%)
Eaton Vance Short Duration Government Income Fund - Class I (EALDX) (0.85%)
Pioneer Bond Fund - Class Y (PICYX) (0.46%)
Pioneer Strategic Income Fund - Class Y (STRYX) (0.73%)
AB High Income Fund - Advisor Class (AGDYX) (0.62%)
PIMCO Real Return Fund - Institutional Class (PRRIX) (0.98%)
BNY Mellon Global Fixed Income Fund - Class Y (DSDYX) (0.45%)
All other T Rowe Funds 2005-2060 Class I
American Funds American Balanced Fund - Class R6 (RLBGX) (0.26%)
TIAA-CREF Large Cap Growth Index Fund - Retirement Class (TILGX) ( 0.42%)
State Street S&P MidCap Index Non-Lending Series Fund - Class F (SSMHX) (0.3%)
Diamond Hill Mid Cap Fund - Class Y (DHPYX) (0.65%)
Undiscovered Managers Behavioral Value Fund - Class R5 (UBVVX) (0.9%)
Oakmark International Fund - Investor Class (OAKIX) (0.98%)
American Funds Capital World Growth and Income Fund - Class R6 (RWIGX) ( 0.42%)
Invesco Oppenheimer Developing Markets Fund - Class R6 (ODVIX) (0.83%)
Vanguard Materials Index Fund - Admiral Class (VMIAX) (0.1%)

Funds available in her 403(b)
Vanguard Treasury Money Market Inv (VUSXX) (0.09%)
Transamerica Capital Preservation Option (TLIC)


Questions:
A- We both have stable job (CPA and Pharmacist) and good credit so my first question is should we take some or all of the $53K in savings and dump it into a fund to get a larger return? Have a fairly new home (7 years old) so big unexpected expenses shouldn’t come up shortly. Cars are getting older (7/8 years), but are in good condition… a $1K her or there car expense wont break anything as we have no other debt. Thoughts here?

B- Inherited a part of the “advisor” fund… looking to sell and buy index fund. Suggestions? Keep and ride out? Any others would you cut? Would also like to clean shop vs keeping this basket.

C- Thinking to change this to 25% TRRMX, 25% SVSPX, 25% GSMYX and 25% TILGX.. Thoughts or other allocations to review?

D- Finally any other general items you see? Too many funds.. sell all tomorrow and buy XXX XXX and XXX? Spend more? Save Less?

Appreciate your time!
Want.Need.Plan
Highlighted funds in the proportions to match your allocation. Sell everything else into those funds. Be mindful of taxable gains in taxable accounts. Others will comment about variable annuity and specific tax minimizing strategy if you include the gains in each taxable fund, but honestly I would just call the fire department and put out that dumpster fire ASAP.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

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ruralavalon
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by ruralavalon » Tue Jun 30, 2020 10:41 am

Welcome to the forum :) .

Congratulations on starting young with an excellent savings rate.

Asset allocation.
Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
Age: 31 / 32

Desired Asset allocation: 90% stocks / 10% bonds (No one dies while riding a roller coaster... unless you jump off mid way through)
Desired International allocation: 10-15% of stocks
I usually recommend a little more in both bonds and international stocks, but I believe your desired asset allocation is within the range of what is reasonable.


Contributions.
Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
. . . Also receive a 15% discount on our employee stock purchase plan (put 6% of salary toward). Never hold the company stock for very long to lock in the 15%+ gain and then use the processed to fund our non retirement account. ($9-12K year)
. . . . .
Contributions

New annual Contributions
$19500 his 401k (3% = $4500)
$19500 her 403b (6% = $4800)
$6000 his IRA/Roth IRA
$6000 her IRA/Roth IRA
$7100 His HAS’
$12000 taxable (for retirement, not short term goals)
$2400 to 529 plans
Total = $79.4k for retirement, not counting the 529s. Your savings rate is excellent.

It's good to see you making maximum annual contributions to all tax-advantaged accounts.



403b and 401k.
I see a total of $308k in retirement and investment accounts.

It's often important to coordinate investments among all accounts, treating all accounts together as a single unified portfolio, rather than treat each account separately.

Start fund selection in the 401k and 403b were the choices are limited using just a couple of the best funds offered, then complete the rest of desired asset allocation using the nearly unlimited choices available in the IRAs and taxable brokerage account. It is not necessary to put all elements of the desired asset allocation in each account.

This approach lets you avoid or limit use of higher expense funds often found in a 401k or 403b. This approach also allows better tax-efficiency when you use a taxable account too.

In my opinion in her 403b plan (28% of total; $86k) the better funds to consider using are:
1) Fidelity 500 Index Fund (FXAIX) (0.01%);
2) Fidelity Total International Index Fund (FTIHX) (0.06%); and
3) Fidelity U.S. Bond Index Fund (FXNAX) (0.03%).

In my opinion in his 401k plan (29% of total; $90k) the better funds to consider using are:
1) State Street S&P 500 Index Securities Lending Series Fund - Class VI (SVSPX) (0.16%); and
2) Pioneer Bond Fund - Class Y (PICYX) (0.46%).
I don't see a good international stock fund that I would want to recommend.


Additional information, IRAs and taxable account.
Some additional information is necessary. Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

Will his current employer's 401k plan accept an incoming rollover of "His Rollover IRA at NWM-$28K" (09% of total)? (If so then it would probably be good to do a rollover into his 401k.)

Are "His Roth IRA at ML = $12K" (04%of total) and "Her Roth IRA at ML = $7K" (02% of total) at Merrill Lynch or Merrill Edge?

(If the Roth IRAs are at Merrill Lynch then I suggest rolling both accounts over to Roth IRAs at a low cost fund provider like Vanguard or Fidelity or to a low cost brokerage like Merrill Edge or E*Trade.)

I usually suggest only very tax-efficient stock index funds in a taxable brokerage account. Wiki article "Tax-efficient Fund Placement". Examples of very tax-efficient stock index funds would include funds like iShares S&P 500 Index (IVV) (0.04%) and SPDR S&P 500 ETF Trust (SPY) (0.09%).

What fund firm or brokerage is your "Taxable- $113K" (37% of total) with? What is your UNrealized capital gain or loss in each fund in that account?


Simplifying the taxable account.
In simplifying the taxable account it's important to try to minimize the income tax liability that will be created.

To begin cleanup of the taxable brokerage account:
1) turn off any automatic reinvestment of dividends you may have have set up, it makes no sense to buy more of funds you will probably want to get rid of;
2) sell VANGUARD MUN BD/TAX-EXEMPT BD (VTEB) (0.09%), Fidelity Advisor® Intermediate Municipal (FZIIX) (0.44%), and Strategic Municipal Opportunities Fund(MAMTX) (0.57%), municipal bonds are not useful in the 22% tax bracket;
3) sell Cohen & Steers Real Estate Securities (CSDIX) (0.87%), it's very tax-INefficient, Wiki article "Tax-efficient Fund Placement";
4) sell any fund with an UNrealized capital loss; and
5) you could invest the "$53K in High Yield Savings account (Citi Current APR 1.2%)" in more shares of "iShares S&P 500 Index (IVV) (0.04%)" .

Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
Currently have $70K at Merrill Lynch in a non retirement account. apologize in advance for the mess in this account. Was sold a Signature Portfolio from a friend of mine paying 1.2% for a mess of ETFS and Mutual funds. Would really like some suggestions to clean this up. . . . .
I am confused by this. Is this $70k available for retirement or long-term investing? Or is it intended for some other short-term use? Is this at Merrill Lynch or Merrill Edge?

Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
Next goal is be able (not that we prob will) retire at 55. God willing, even if we make nothing, we will have $1.7M in 24 years however I am estimating we will have a conservative $5.5M at 55 years old. House will be paid off.. $50K a year in today dollars for expenses.. Think this is do able?
Here are calculators you can use to assess the range of possible outcomes:
1) www.firecalc.com; and
2) www.i-orp.com.

EDITED to add links and correct typos.
Last edited by ruralavalon on Tue Jun 30, 2020 5:45 pm, edited 5 times in total.

pkcrafter
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by pkcrafter » Tue Jun 30, 2020 11:01 am

want need, an appropriate name indeed!

You've got a real mess here, but I just wanted to comment on the taxable account. It's a common approach for an advisor and it shows just how little they really care for their clients. You have several very tax-INefficient funds in there and the advisor knows this very well, but he'd rather snow you with lots of funds rather than a few good ones.The one and two percent holdings are also ridiculous! I guess he doesn't want to show how simple it really can be, but by putting on the big show he's increased your costs and made the taxable account unmanageable. :confused

We are glad you've come to Bogleheads to learn a much more effective, efficient, simpler, way to invest.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

MathWizard
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by MathWizard » Tue Jun 30, 2020 11:58 am

I think your planning for $50K for expenses in retirement is low.
How did you arrive at that number?

You are currently spending $74K, and I assume that is after health insurance,
income tax withholding, flex benefits, retirement savings and FICA taxes withheld
by your employer. Retirement savings and FICA will no longer be needed, but
health insurance and flex benefits for health (flex 1) will be need to be part of
your expenses, and will no longer be pre-tax. You will have fewer expenses when the kids leave the nest, and the house is paid off, but we expect to spend $64K after health insurance and taxes, and we live in a Medium Cost of Living areas.

1) Health Ins is not typically considered by people, and it is a huge expenses
even after 65, much more of you plan to retire at 55.

I am allowed to stay on my very good employer's group plan which reduces
cost vs. a private plan. Also Medicare has its own premiums. I also include money we
are currently spending on health through flex 1. (You are using flex 2 for daycare
expenses is pre-tax money, correct?)

I estimate $18K/yr before 65 and $5.1K per person after 65 in today's dollars. I figure
everything in today's dollars with real (inflation-adjusted) investment returns. I do
figure 2% inflation in health costs above normal inflation, this based on a financial
advisor from TIAA-CREF.

I assume taking SS benefits at 70, with my wife taking her SS at FRA.

You also need to factor in taxes, including health ins and on the money you will
pay taxes on. I will have $13K in state and federal taxes before age 65, mostly due
to the high amount for health insurance, but also because the standard deduction goes
up a bit when you reach 65.

I think you are well on your way. Retiring at 55 might not be doable, but that depends on returns over the next decades. Each year before age 65 means you have one more
expensive year because of health care and lower SD, and one less year to save and let your portfolio grow. To retire 10 years before age 55 means you have to save a lot of money.

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celia
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by celia » Tue Jun 30, 2020 12:42 pm

Since you will be cleaning up this mess (after you fire the advisor(s) who did this to you), you might as well understand Tax-efficient Fund Placement which can help you save on taxes. Basically, you want all your Roths to contain the faster-growing assets (stock funds) so all that growth can be tax-free. Then you want all the bond funds in tax-deferred since there are no tax breaks on the interest they would generate if they were in taxable. That also controls the growth of the tax-deferred.

Here’s one way to clean it up. Write down your account names and the value in each. Then hide your statements so you aren’t influenced by what you already have. Write down your desired portfolio using your current values, taking into accout your level of risk and desired asset allocation. Lastly, figure out how you can get from where you are to where you want to be. The Roths and tax-deferred can be changed this year without any tax consequences. But the taxable might take a few years if you have gains to consider.


How are your insurance coverages? Hopefully you have an appropriate level of coverage on life and liability insurance.

You also need to address estate planning, if not yet done. I understand MA has a rather low estate tax exemption compared to other states. (Federal will be the same for all states.)
Last edited by celia on Tue Jun 30, 2020 1:01 pm, edited 1 time in total.

as9
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by as9 » Tue Jun 30, 2020 12:54 pm

Mustang8307 wrote:
Tue Jun 30, 2020 9:07 am
marcopolo wrote:
Tue Jun 30, 2020 1:16 am
TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.


-TheDDC
Seriously?

3K is the mortgage, and the OP has kids.

Is it really that hard for people to imagine that other people may live their lives differently than themselves?
Agreed. We spend $3k per month just on daycare and formula each month. Costs are high with young kids.
Also, they are in their early 30s with a house they can afford, a net worth north of $500k, maxing tax-advantaged space, and saving more in taxable. They are well on their way and would be totally justified if they wanted to up the spending a bit.

KlangFool
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by KlangFool » Tue Jun 30, 2020 1:12 pm

OP,

Your emergency fund is 25K. Your annual expense is 84K per year. Your jobs are CPA and Pharmacist. We have 47+ million unemployed and you believe that you have job security.

Your AA is 90/10 with a portfolio size of 300K.

In summary, if both of you are unemployed and the stock market drops 50%, you would only last ((300K * 55%) + 25K)/84K = 2.3 years. You only have 25K plus 30K of the fixed income. After 8 months of unemployment, you would be selling the stock at a 50% loss.

KlangFool

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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by KlangFool » Tue Jun 30, 2020 1:20 pm

OP,

1) Increase your emergency fund to at least 6 months.

2) Change your AA to 70/30.

At your saving rate, you have zero need to take the risk of 90/10. But, if something bad happened to you over the coming recession, it would be very painful with 90/10.

KlangFool

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4nursebee
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by 4nursebee » Tue Jun 30, 2020 1:42 pm

Good job.
No advice here.
One gets to decide where they want to live on the consumption vs saving curve, you likely have more wiggle room than many.
The older I get, the happier I am about saving as early as I did.
I favor simplicity for investments.
Pale Blue Dot

Robdac
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Robdac » Tue Jun 30, 2020 3:04 pm

You have way too many funds. It's ridiculous. Sorry.

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 8:33 pm

Cubicle wrote:
Mon Jun 29, 2020 11:06 pm
I'm going to be blunt. I can't process the dumpster fire you have. In everything tax advantaged, sell everything & put it into 1-3 broad index fund with a low expense ratio. You cannot manage 20 funds. Once that is done, then assess what allocations you want. In taxable accounts sell anything with a loss.

If your ER fund is adequate, then I would invest the $53,000.

What's the expense ratio on the advisor fund? That will determine what to do with it.
Thank you for your input. I ended up closing down the advisor fund which had 22 (2 funds could not transfer over to Merrill Edge** will correct this above). The Fee was 1.2%.

Surprise (or am I?) that the majority of "advisor" funds are in loss positions. The funds I choice personally was MGK,PRCOX, SPY, VGT, FDN, VGR, BOTZ, XNTK, NOBL and total about $22K of this mess are up $100 (VGR being a REIT are dragging down the portfolio 20% or $500)

As for the $53K in dry powder.. yes it very tempting to invest in an index fund (wish i did back in March.. hindsight 20/20). Tough to convince the wife with these uncertain times. At min, will sharpen the pencil and drip a few grand a month. Whats your favorite fund?

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Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 8:46 pm

marcopolo wrote:
Mon Jun 29, 2020 11:14 pm
I second the dumpster fire comment above.

What are you hoping to accomplish with a fund in which you have 1% or 2% (or less in some case) of your portofolio?!?

Congratulations on having such a high level of savings, and getting started at a relatively early age.

I would second the recommendation to simplify your portfolio. You can do it painlessly in tax-advantaged accounts, the taxable account will take some more thought.

Keep saving at high rate and focus on building your careers, the easiest way to achieve early retirement is to increase your income relative to spending needs.

Good luck to you.
Thank you for your comment. Ahh yes our dumpster fire.. the low % are why we are here.. :oops: Trying to clean everything up for a simpler means of investing... been investing since College (can thank Patriot Coal (PCX) for paying for the first year of college) Agreed, trying to live comfortably but pay ourselves first.

As for careers, yes picked some hot careers as have been fortunate enough to even have the wife work part time (very expensive daycare as she is a pharmacist), but short term struggle for long term gain. Hell will have you all to thank when we can leave a legacy to the kids.

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Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 9:21 pm

retired@50 wrote:
Mon Jun 29, 2020 11:19 pm
It's nearly incomprehensible.

All I can suggest is you think about assets in one of three broad categories.
U.S. Stock.
International Stock.
U.S. Bonds.

Once you manage to label each fund you own with one of those categories, then you can work on converting them to the Boglehead three fund portfolio. Please read the wiki on this important topic to help simplify your portfolio and your life. There is simply nothing to be gained by owning over 30 or 40 funds. It's not diversification, it's complexity.

https://www.bogleheads.org/wiki/Three-fund_portfolio

Regards,
Thanks for your comment! Yes updated with Large, (Growth, Blend, Value), MID, Small, International and Bond. Broke US as I think i would like some blend here as well.

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Cubicle
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Cubicle » Tue Jun 30, 2020 9:35 pm

Want.Need.Plan wrote:
Tue Jun 30, 2020 8:33 pm
Whats your favorite fund?
Pragmatically, VTWAX / VT.
__________________________

Glad you dumped the expensive funds, which surprise, were at a loss. This is the time to start fresh. Just by posting & acting, you have won the majority of the investing battle. Simple always wins.
"Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

reln
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by reln » Tue Jun 30, 2020 9:36 pm

Too much complexity

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 9:43 pm

SnowBog wrote:
Mon Jun 29, 2020 11:20 pm
I'll let others weigh in on me detailed advice, but initial thoughts...

Recommend changing the subject (edit your original post), all caps is frowned upon... There's also a format for these portfolio reviews that may make make it easier to review. Search the wiki (or someone will likely post the link).

I didn't see you mention if you have an emergency fund (and if that's part of the listed balances). Generally the recommendation is to have 6+ months of expenses set aside to ride out life's bumps. That will drive what to do with your cash...

Few other thoughts of things I wish I knew years ago:
  • Does your 6% ESPP max out for the year ($25k IIRC)? If not, you may want to think of increasing if possible to max out, even if the difference is just returned to "checking". If you can sell immediately, the 15% discount is great "free money".
  • Check to see if either of your retirement plans allow for "after tax" contributions (otherwise known as the Mega Backdoor Roth). Great benefit if you have access.
  • Check to see if you have access to any self directed investment options in your retirement accounts. If you're accounts are at Fidelity, this would be called a BrokerageLink account. This may require more paperwork to setup, but if you have access, it basically let's you invest in anything you want - not limited to the pre-selected options in your plan.
  • Because they are tax advantaged, you basically can change investments at any time in non-taxable accounts without tax impact. (I held onto my "old funds" far too long thinking I'd have an impact if I sold).
  • Simple is good. You're investments don't need to be complicated.
Best of luck.
Yes believe someone was kind enough to soften the tone. :sharebeer

Yes Emergency fund = $25K and growing... tend to also like putting cash aside for some knowns as well... AKA cars are getting older so will be saving a pile for that. The $25K is 3 Months of expenses... and if needed could be stretched. Right wrong or indifferent, give the misses $2K no questions ask as a monthly budget.. she buys the groceries and all items for the kids... Our careers are in high demand (recruiters haunt me daily- SEC Reporting Sr. Mgr) and the boss lady is a pharmacist and able to work part time. If i lost my job.. would most likely get an interview the next day and she could pick up additional hours. She has seniority at the place she is at so she would have to intentionally do something to get the boot.

The max is 6% of Salary so about $9K for me which I max out. It accumulates for 6 months then buys at the lower price (begin or end) of the plan so pending we are not in a Qtr close, we can sell right away which the majority of people do.

As for the after tax contributions, I believe we do since the company provides a ROTH 401K.

My wifes 403B allows for self directed options. Can open a PCRA through Schwab.

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 9:45 pm

Bama12 wrote:
Mon Jun 29, 2020 11:21 pm
I thought I had a lot of funds,ets and stocks.

I'm not even going to drive into all of this. I would cut this in half.

Why so many of the same class? I think, I counted 4 mid cap funds?
Agreed :oops: Edited the post to break them out.

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 9:54 pm

TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.

-TheDDC
Go big or go home.. i like it. If you dont mind me asking. What fund do you put all your eggs in?

Like I mentioned in a previous response.. $3K is Mtg... yes low interest rate for a 15 year and ran the numbers and could be a head $100K in 15years if I put the difference in the mkt, but i am assuming that past performance = current performance.Also even with stable jobs.. who knows what tomorrow will bring.. cant go in foreclosure if the house is paid off... if I ever miss having a MTG after 15 years... Il go get another.

The other $4K... well think after maxing out retirement accounts and then some... gotta spend a little. Cant take it to the grave.

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 9:59 pm

WoodSpinner wrote:
Mon Jun 29, 2020 11:25 pm
OP,

For your taxable funds, can you breakdown which have capital gains, which have losses?

You have way too many funds, they overlap and have high expense ratios. Would love to sell them in a tax efficient manner and shift to a small subset of low cost index funds.

Good news is you have a good savings rate!

Glad you posted and asked, hope we can be of help.

WoodSpinner
GAIN
IVV
MGK
PRCOX
VTEB
VGT
FDN
FZIIX
BOTZ
XNTK
IAU

Remaining = losers
All and all down 2.7% of $1850

Wont be apposed to sell in the right manner to walk forward.

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:02 pm

SnowBog wrote:
Mon Jun 29, 2020 11:28 pm
One other thought...

Assuming your taxable acount has gains...

May want to look at UTMA accounts for your kids. You can "gift" them appreciated shares, which can then be sold in their accounts likely at less tax.

I did this to help unwind some holdings in my taxable with high gains.

Make sure you understand the Kiddie Tax thresholds, and understand that once gifted the money is your child's (you can't get it back). UTMA can also negatively impact college financial aid.

So do your due diligence, but might be something to consider...
Thanks for the suggestion. Will keep that in mind when pending how the year turns out.

Topic Author
Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:04 pm

sergeant wrote:
Mon Jun 29, 2020 11:56 pm
What a mess! I would pick one Target Date Fund with the appropriate asset allocation (2050) in each and every account and be done with it.

All Caps is yelling. It isn't polite to yell at folks who just want to help.

Even for the taxable account? Favorite Fund.

Apologize for the Caps. Yelling or screaming for help. :sharebeer

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Want.Need.Plan
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:10 pm

palanzo wrote:
Tue Jun 30, 2020 12:51 am
I will be blunt ask you asked.

First thing is to change the title. Please do not use ALL CAPS.

Second thing is that fortunately only 60K of taxable is invested in that mess. I would reply and list all the funds with long term capital losses and those funds with long term capital gains, along with the amounts. We can then provide suggestions on how to dispose of the mess in taxable. Do you have any other capital losses from previous years? You may want to consider selling even if you incur a capital gain (and pay the taxes) because you have funds with very high expense ratios in taxable and furthermore you have funds that are completely unsuitable for a taxable account e.g. Cohen & Steers Real Estate Securities (CSDIX) and PIMCO CommoditiesPLUS (PCLPX). If you follow the advice that you will receive here you will end up with efficient index funds in taxable.

Third thing is never take advice from your "friend" again.

Good luck and keep replying.
Again apologize for the Caps. :sharebeer

Listed above that I am in a total next loss position of $1850 so wont lose sleep over. Thoughts on selling the dogs and dripping the cash back in over time or at once?

This friend had a big name behind him with flashy print outs and charts showing earnings potential .. Live and learn.... :oops: $2500 mistake (current loss + Fees)

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Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:12 pm

marcopolo wrote:
Tue Jun 30, 2020 1:16 am
TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.


-TheDDC
Seriously?

3K is the mortgage, and the OP has kids.

Is it really that hard for people to imagine that other people may live their lives differently than themselves?
Thanks.. think it would be different if we where not maxing out retirement accounts or had a boat load of debt or an actual boat. "Bring Over Another Thousand"

Topic Author
Want.Need.Plan
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:16 pm

hnd wrote:
Tue Jun 30, 2020 9:04 am
its pretty amazing how expensive kids are.

regarding the portfolio, if you are going to be managing it yourself, it would behoove you to simplify it down. when i began this journey of self investing I rolled an old work SIMPLE into a roth, I created a plan that was simple enough. 30% US index, 20% US index growth, 20% international, 20% Target Date, and 10% bonds. what happened next was insane. I built a portfolio of 30+ mutual funds and etfs. I kept expenses low but didn't take into consideration turnover and overlap. over the past few years i've begun transitioning these into simpler accounts.

I try and allocate about 10% of my portfolio to the those funds/etfs/stocks that don't necessarily meet the 3 fund mantra. some are a bit nutty some are expensive but perform. It takes care of my need to meddle but isn't affecting my core investments on a larger scale.
Getting the sense that alot of guys (and possibly gals here... its 2020 and all) :happy like simple.... but have that itch for a small amount of nutty.. Share you favorite nutty fund?

I hear you on overlap.. for ETFs I am starting to use https://www.etfrc.com/....can you recommend a site for mutual funds?

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Want.Need.Plan
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Re: DO NOT GO GENTLE ON US!!! PERSONAL PORTFOLIO SUGGESTIONS NEEDED!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:18 pm

Mustang8307 wrote:
Tue Jun 30, 2020 9:07 am
marcopolo wrote:
Tue Jun 30, 2020 1:16 am
TheDDC wrote:
Mon Jun 29, 2020 11:23 pm
Agree with above comments regarding slice and dice portfolio. The shear number of funds like that is unnecessary. We would invite you to look into the 1-3 fund portfolio. That's it. I like your asset allocation, but I would be at 100/0 with retirement assets. Bonds are a performance killer.

What on earth are you spending 7k a month on? A wine collection or something nice I hope? Your spending seems out in left field.


-TheDDC
Seriously?

3K is the mortgage, and the OP has kids.

Is it really that hard for people to imagine that other people may live their lives differently than themselves?
Agreed. We spend $3k per month just on daycare and formula each month. Costs are high with young kids.
Thank god they are cute.... think they make them that way for a reason.... :D

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Want.Need.Plan
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:21 pm

Nate79 wrote:
Tue Jun 30, 2020 9:25 am
I think you got good recommendations so far and I'll just add that I would double your emergency fund - it's pretty weak at best 3 months.

This is my hesitation on the $53K at Citi..solid jobs... but COVID, ELECTIONS, any day that ends in Y, the weather, etc are all the unknowns.

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Want.Need.Plan
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:32 pm

tashnewbie wrote:
Tue Jun 30, 2020 10:05 am
I agree with others - you have a bit of a dumpster fire here with all of the funds. I would reduce the 401k, 403b, and IRAs down to 2-3 index funds NOW. You can do that without any immediate tax consequences. Wife has some good options for US Stock, International Stock, and US bonds in her 403b. I'd probably allocate your entire desired bond allocation in her 403b, to the extent possible. Use the S&P 500 index fund in his 401k for US Stock.

Then you'll have to tackle the taxable account over time if you want to be as tax-efficient as reasonably possible. I would stop automatic reinvestment of dividends and capital gains NOW. Then look at the specific lots of funds with ERs >0.4% to see if any have losses. If they do, I'd probably sell them now. Then see if any of the higher ER funds have any gains. See if you can offset gains with the losses. It may take years to unwind all of this.

I think your ER (<4 months) is a little slim, especially given the monthly expenses and 2 kids. If there's some flexibility with your monthly expenditure, then it might not be as important to fortify the EF, but I would think about allocating some of the Citibank HYSA as an EF, possibly all of it, which would put you at ~11 months of expenses (I'm not counting the $2k cash in your HSA, which could be used to reimburse yourself for past or future medical expenses). Where is your current EF kept? Is it mixed in the Citi account?

Great job on the savings!

ETA: I would think about moving your IRAs to a different custodian like Fidelity, Schwab, E-Trade, or Vanguard, and getting out of NWM and any actively managed products.

Thanks for the comment. This is exactly why i posted... get ideas to then run models (since im a dork like that :shock: ) and see hey does the performance (even though not guaranteed) outweigh the cost... then religiously schedule out a plan... and then execute.

Good point on stopping Dividends / CG. Will do that now.

As noted above.. taxable account down $1850.. kids eat tomorrow, sun will rise from the east, and all will be good... lesson learned.

As for ER, as noted above its the sensitive topic... have good jobs so 11 months is too high.. maybe 5??? And thats stretching if the company goes under and I am trying to find a dream job vs a job to fill a bucket.

ER is kept at BOA excluded from CITI

For the IRA's... just last week set up the transfer to move my IRA from NWM to Merrill Edge (like to see just about everything in one view)... Will keep my wifes Roth IRA at NWM until the end of the year... have a weekly ACH set up to max that out (dollar cost averaging to the max or to piss off the advisor).... Then will move to Merrill.

Torn on these ROTH American funds... front loaded at 5.75% hurts...

Topic Author
Want.Need.Plan
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:36 pm

Ferdinand2014 wrote:
Tue Jun 30, 2020 10:14 am
Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
HI ALL DO NOT GO GENTLE ON US (like others state) Please be as blunt as possible.


Overall goal is to have our house paid off in 15 years right when our kids go to college…. Which then frees up $3K a month to help cash flow a portion of college. Also have 529 plans which we are contributing to and will continue to increase the contributions. Including Mtg, monthly expenses are around $7K. We also set aside project money which amount to $5-7K a year for various projects around the house… Deck, patio, shed etc. Total annual expenses of $84K.

$67K Max Retirement savings (Roth + 401K+ Match + HSA). Also receive a 15% discount on our employee stock purchase plan (put 6% of salary toward). Never hold the company stock for very long to lock in the 15%+ gain and then use the processed to fund our non retirement account. ($9-12K year)

Next goal is be able (not that we prob will) retire at 55. God willing, even if we make nothing, we will have $1.7M in 24 years however I am estimating we will have a conservative $5.5M at 55 years old. House will be paid off.. $50K a year in today dollars for expenses.. Think this is do able?

Emergency funds:
$23K in Checking
$2K in HSA (Cash Portion)
==$25K
(Monthly expenses including Mtg = $7K / Month)

Debt: Mtg recently refinanced to a 15 year fixed at 2.625% = $340K – LTV of 50%

Tax Filing Status: Married Filing Jointly

Tax Rate: 22% Tax Bracket 11.38% Effective tax rate) Federal, 5.05% State

State of Residence: MA

Age: 31 / 32

Desired Asset allocation: 90% stocks / 10% bonds (No one dies while riding a roller coaster... unless you jump off mid way through)
Desired International allocation: 10-15% of stocks

Currently have $70K at Merrill Lynch in a non retirement account. apologize in advance for the mess in this account. Was sold a Signature Portfolio from a friend of mine paying 1.2% for a mess of ETFS and Mutual funds. Would really like some suggestions to clean this up. We also hold $53K in a high yield CITI account (currently 1.2%)

Have $235K in retirement accounts with $212K in traditional IRA, $19K in Roth IRA, $4K in 529 plans.

Currently invest 6% of salary in the company’s employee stock purchase plan which provides a 15% discount and is held twice a year. Quick $2K in gains each year.


Current retirement assets

Taxable- $113K
45%- $53K in High Yield Savings account (Citi Current APR 1.2%) *** (A)
11%- $13K iShares S&P 500 Index (IVV) (0.04%)
5%- $7K SCHWAB STRATEGI/INTL EQUITY ETF (SCHF) (0.06%)
4%- $5K VANGUARD WORLD/VANGUARD MEGA CAP GROWTH (MGK) (0.07%)
4%- $4K T. Rowe Price U.S. Equity Research Fund (PRCOX) (0.69%)
3%- $3K VANGUARD MUN BD/TAX-EXEMPT BD (VTEB) (0.09%)
3%- $3K SPDR S&P 500 ETF Trust (SPY) (0.09%)
3%- $3K Vanguard Information Technology ETF (VGT) (0.1%)
3%- $3K Oakmark Select Fund Investor Class (OAKLX) (0.96%)*** (B)
2%- $2K Vanguard Emerging Markets Stock Index (VWO) (0.14%)
2%- $2K iShares Core S&P Mid Cap ETF (IJH) (0.07%)
2%- $2K American Funds New World Fund® Class (NFFFX) (0.75%)*** (B)
2%- $2K Fidelity Advisor® Intermediate Municipal (FZIIX) (0.44%)
2%- $2K First Trust EXCHANGE/DOW JONES INTERNET INDEX (FDN) (0.52%)
2%- $2K Parnassus Mid Cap Fund Institutional (PFPMX) (0.75%)*** (B)
2%- $2K Goldman Sachs International Small Cap (GICIX) (0.90%)*** (B)
2%- $2K GLB X FUNDS/ROBOTICS & ARTIFICI (BOTZ) (0.68%)
2%- $2K Strategic Municipal Opportunities Fund(MAMTX) (0.57%)
1%- $1K SPDR Nyse Technology ETF (XNTK) (0.57%)
1%- $1K iShares S&P SmallCap 600 Index (IJR) (0.07%)
1%- $1K PIMCO CommoditiesPLUS (PCLPX) (0.84%)
<1%- <$1K PROSHARES TR/S&P 500 DIVID ARIST (NOBL) (0.35%)
<1%- <$1K iShares Gold Trust (IAU) (0.25%)
<1%- <$1K Cohen & Steers Real Estate Securities (CSDIX) (0.87%)*** (B)
<1%- <$1K DWS Enhanced Commodity Strategy (SKIRX) (0.99%)*** (B)

2%- $2K Vector Group Ltd (VGR)

His 401k- $90K ***(‘C)
26%- T Rowe Price Retirement I 2050 Fund - Class I (TRRMX) (0.71%)
18% JPMorgan Equity Income Fund - Class R6 (OIEJX) (0.49%)
[b]2% State Street S&P 500 Index Securities Lending Series Fund - Class VI (SVSPX) (0.16%)[/b]
54%- Goldman Sachs Small/Mid Cap Growth Fund - Institutional Class (GSMYX) (0.94%)

His Roth IRA at ML = $12K
27% Invesco QQQ Trust Series 1 (QQQ) (0.2%)
23% Vanguard 500 Index Fund (VOO) (0.04%)
17% American Funds Growth Fund of America (AGTHX) (0.64%)
16% American Funds AMCAP (AMCPX) (0.67%)
15% American Funds Investment Co of America (AIVSX) (0.57%)
2% Vanguard Value Index Fund (VTV) (0.05%)

His Rollover IRA at NWM-$28K

All of the following are in a Variable Life Insurance Fund.. Yes I know.. I have been sold a bag of expensive garbage.

Equity Income (MSA/T Rowe Price)-B
Neuberger Berman Sustainable Equity-B
Fidelity VIP Contrafund-B
FocusedAppreciation(MSA/LoomisSayles)-
Mid Cap Value(MSA/Amer Century)-B
Fidelity VIP Mid Cap-B
Small Cap Value (MSA/T Rowe Price)-B
Research International Core (MSA/MFS)-B
International Eq (MSA/Franklin Tmpl)-B
International Growth (MSA/FIAM LLC)-B
Emerging Mkts Equity (MSA/Aberdeen)-B
Select Bond (MSA/Wells Capital Mgmt)-B
Strategic Bond (RIF)-
Inflation Protect (MSA/Amer Century)-B
Multi Sector Bond (MSA/PIMCO)-B
High Yield Bond (MSA/Federated Inv.)-B
Global Real Estate Securities (RIF)-B
Credit Suisse Commodity Strategy-B

HIS HSA’- $2K

30% T.Rowe Price Blue Chip I
70% Vanguard 500 Index - A

Her 403b-- $86K
1% Pioneer Short Term Income Y (PSHYX) (0.46%)
2% Fidelity U.S. Bond Index (FXNAS) (0.03%)
3% Metropolitan West Total Return Bond Plan (MWTSX) (0.37%)
2% BlackRock Inflation Protected Bond K (BPLBX) (0.45%)
1% Templeton Global Bond R6 (FBNRX) (0.57%)
24% American Funds Washington Mutual R6 (RWMGX) ( 0.27%)
7% ClearBridge Appreciation IS (LMESX) (0.57%)
11% Fidelity 500 Index (FXAIX) (0.01%)
7% Parnassus Core Equity Instl (PRILX) (0.63%)
27% MFS Massachusetts Investors Gr Stk R6 (MIGNX) (0.38%)
2% Vanguard Selected Value Inv (VASVX) (0.33%)
3% Fidelity Extended Market Index (FSMAX) (0.04%)
4% Carillon Eagle Mid Cap Growth A (HAGAX) (1.05%)
2% Victory Sycamore Small Company Opp R6 (VSOBX) (0.87%)
3% American Funds EuroPacific Gr R6 (RERGX) (0.49%)
]1% Fidelity Total International Index (FTIHX) (0.06%)

Her Roth IRA at ML = $7K
100% AMERICAN FUNDS 2055 TARGET DATE-A (AAMTX) (0.74%)

529 Plans
2 plans for each child- $5000 total with Fidelity Mix—MA Portfolio 2036 Fidelity Blend (0.93%) ** Will be switching to the Fidelity Index which has 0.14%

Term Life Insurance
$1M Him and $500K Her (Company also is 2X Salary for Him and 1X Her)


Contributions

New annual Contributions
$19500 his 401k (3% = $4500)
$19500 her 403b (6% = $4800)
$6000 his IRA/Roth IRA
$6000 her IRA/Roth IRA
$7100 His HAS’
$12000 taxable (for retirement, not short term goals)
$2400 to 529 plans

Available funds

Funds available in his 401(k)
Vanguard Federal Money Market Fund - Investor Class (VUSXX) (0.11%)
Eaton Vance Short Duration Government Income Fund - Class I (EALDX) (0.85%)
Pioneer Bond Fund - Class Y (PICYX) (0.46%)
Pioneer Strategic Income Fund - Class Y (STRYX) (0.73%)
AB High Income Fund - Advisor Class (AGDYX) (0.62%)
PIMCO Real Return Fund - Institutional Class (PRRIX) (0.98%)
BNY Mellon Global Fixed Income Fund - Class Y (DSDYX) (0.45%)
All other T Rowe Funds 2005-2060 Class I
American Funds American Balanced Fund - Class R6 (RLBGX) (0.26%)
TIAA-CREF Large Cap Growth Index Fund - Retirement Class (TILGX) ( 0.42%)
State Street S&P MidCap Index Non-Lending Series Fund - Class F (SSMHX) (0.3%)
Diamond Hill Mid Cap Fund - Class Y (DHPYX) (0.65%)
Undiscovered Managers Behavioral Value Fund - Class R5 (UBVVX) (0.9%)
Oakmark International Fund - Investor Class (OAKIX) (0.98%)
American Funds Capital World Growth and Income Fund - Class R6 (RWIGX) ( 0.42%)
Invesco Oppenheimer Developing Markets Fund - Class R6 (ODVIX) (0.83%)
Vanguard Materials Index Fund - Admiral Class (VMIAX) (0.1%)

Funds available in her 403(b)
Vanguard Treasury Money Market Inv (VUSXX) (0.09%)
Transamerica Capital Preservation Option (TLIC)


Questions:
A- We both have stable job (CPA and Pharmacist) and good credit so my first question is should we take some or all of the $53K in savings and dump it into a fund to get a larger return? Have a fairly new home (7 years old) so big unexpected expenses shouldn’t come up shortly. Cars are getting older (7/8 years), but are in good condition… a $1K her or there car expense wont break anything as we have no other debt. Thoughts here?

B- Inherited a part of the “advisor” fund… looking to sell and buy index fund. Suggestions? Keep and ride out? Any others would you cut? Would also like to clean shop vs keeping this basket.

C- Thinking to change this to 25% TRRMX, 25% SVSPX, 25% GSMYX and 25% TILGX.. Thoughts or other allocations to review?

D- Finally any other general items you see? Too many funds.. sell all tomorrow and buy XXX XXX and XXX? Spend more? Save Less?

Appreciate your time!
Want.Need.Plan
Highlighted funds in the proportions to match your allocation. Sell everything else into those funds. Be mindful of taxable gains in taxable accounts. Others will comment about variable annuity and specific tax minimizing strategy if you include the gains in each taxable fund, but honestly I would just call the fire department and put out that dumpster fire ASAP.
Thanks for the comment... Ahh yes just need Gasoline and a match.....
No mix in Large Cap growth?

Dregob
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Dregob » Tue Jun 30, 2020 10:44 pm

Just wondering was that a self-directed mess or did an advisor "help" with that portfolio?

Topic Author
Want.Need.Plan
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Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:57 pm

ruralavalon wrote:
Tue Jun 30, 2020 10:41 am
Welcome to the forum :) .

Congratulations on starting young with an excellent savings rate.

Asset allocation.
Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
Age: 31 / 32

Desired Asset allocation: 90% stocks / 10% bonds (No one dies while riding a roller coaster... unless you jump off mid way through)
Desired International allocation: 10-15% of stocks
I usually recommend a little more in both bonds and international stocks, but I believe your desired asset allocation is within the range of what is reasonable.


Contributions.
Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
. . . Also receive a 15% discount on our employee stock purchase plan (put 6% of salary toward). Never hold the company stock for very long to lock in the 15%+ gain and then use the processed to fund our non retirement account. ($9-12K year)
. . . . .
Contributions

New annual Contributions
$19500 his 401k (3% = $4500)
$19500 her 403b (6% = $4800)
$6000 his IRA/Roth IRA
$6000 her IRA/Roth IRA
$7100 His HAS’
$12000 taxable (for retirement, not short term goals)
$2400 to 529 plans
Total = $79.4k for retirement, not counting the 529s. Your savings rate is excellent.

It's good to see you making maximum annual contributions to all tax-advantaged accounts.



403b and 401k.
I see a total of $308k in retirement and investment accounts.

It's often important to coordinate investments among all accounts, treating all accounts together as a single unified portfolio, rather than treat each account separately.

Start fund selection in the 401k and 403b were the choices are limited using just a couple of the best funds offered, then complete the rest of desired asset allocation using the nearly unlimited choices available in the IRAs and taxable brokerage account. It is not necessary to put all elements of the desired asset allocation in each account.

This approach lets you avoid or limit use of higher expense funds often found in a 401k or 403b. This approach also allows better tax-efficiency when you use a taxable account too.

In my opinion in her 403b plan (28% of total; $86k) the better funds to consider using are:
1) Fidelity 500 Index Fund (FXAIX) (0.01%);
2) Fidelity Total International Index Fund (FTIHX) (0.06%); and
3) Fidelity U.S. Bond Index Fund (FXNAX) (0.03%).

In my opinion in his 401k plan (29% of total; $90k) the better funds to consider using are:
1) State Street S&P 500 Index Securities Lending Series Fund - Class VI (SVSPX) (0.16%); and
2) Pioneer Bond Fund - Class Y (PICYX) (0.46%).
I don't see a good international stock fund that I would want to recommend.


Additional information, IRAs and taxable account.
Some additional information is necessary. Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

Will his current employer's 401k plan accept an incoming rollover of "His Rollover IRA at NWM-$28K" (09% of total)? (If so then it would probably be good to do a rollover into his 401k.)

Are "His Roth IRA at ML = $12K" (04%of total) and "Her Roth IRA at ML = $7K" (02% of total) at Merrill Lynch or Merrill Edge?

(If the Roth IRAs are at Merrill Lynch then I suggest rolling both accounts over to Roth IRAs at a low cost fund provider like Vanguard or Fidelity or to a low cost brokerage like Merrill Edge or E*Trade.)

I usually suggest only very tax-efficient stock index funds in a taxable brokerage account. Wiki article "Tax-efficient Fund Placement". Examples of very tax-efficient stock index funds would include funds like iShares S&P 500 Index (IVV) (0.04%) and SPDR S&P 500 ETF Trust (SPY) (0.09%).

What fund firm or brokerage is your "Taxable- $113K" (37% of total) with? What is your UNrealized capital gain or loss in each fund in that account?


Simplifying the taxable account.
In simplifying the taxable account it's important to try to minimize the income tax liability that will be created.

To begin cleanup of the taxable brokerage account:
1) turn off any automatic reinvestment of dividends you may have have set up, it makes no sense to buy more of funds you will probably want to get rid of;
2) sell VANGUARD MUN BD/TAX-EXEMPT BD (VTEB) (0.09%), Fidelity Advisor® Intermediate Municipal (FZIIX) (0.44%), and Strategic Municipal Opportunities Fund(MAMTX) (0.57%), municipal bonds are not useful in the 22% tax bracket;
3) sell Cohen & Steers Real Estate Securities (CSDIX) (0.87%), it's very tax-INefficient, Wiki article "Tax-efficient Fund Placement";
4) sell any fund with an UNrealized capital loss; and
5) you could invest the "$53K in High Yield Savings account (Citi Current APR 1.2%)" in more shares of "iShares S&P 500 Index (IVV) (0.04%)" .

Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
Currently have $70K at Merrill Lynch in a non retirement account. apologize in advance for the mess in this account. Was sold a Signature Portfolio from a friend of mine paying 1.2% for a mess of ETFS and Mutual funds. Would really like some suggestions to clean this up. . . . .
I am confused by this. Is this $70k available for retirement or long-term investing? Or is it intended for some other short-term use? Is this at Merrill Lynch or Merrill Edge?

Want.Need.Plan wrote:
Mon Jun 29, 2020 10:54 pm
Next goal is be able (not that we prob will) retire at 55. God willing, even if we make nothing, we will have $1.7M in 24 years however I am estimating we will have a conservative $5.5M at 55 years old. House will be paid off.. $50K a year in today dollars for expenses.. Think this is do able?
Here are calculators you can use to assess the range of possible outcomes:
1) www.firecalc.com; and
2) www.i-orp.com.

EDITED to add links and correct typos.
Appreciate the lengthy response so will try to hit them all.

Overall I believe the US equity MKT will provide the largest return... Think as the years go by and more and more is pumped into the system... the system will simply be "Too Big to Fail" and growth will be inevitable. Bonds somewhat even out the possibel down swing.. but with todays rates will be another under performing i think. International is OK, but where? DAX was lockstep with SP500, but with the recent Wirecard situation, think the news buyers are pulling out.

Think the US is not entirely out of the woods but coming from the BIG 4 and SEC world... I have high confidence that an Enron, Worldcom, etc would be hard to pull off...

401K / 403B- As noted above, do have option to invest on our own in the 403B if there is a superior option which is not offered elsewhere.
Maybe keep the international % in the 403B?

**401K will accept the NWM rollover, however transfering it to Merrill Edge***

Merrill Edge is where the taxable account is held... total unrealized lose of $1850
Would sell the majority of the taxable account... any though on keep Large Cap growth as well? MGK / VGT... XNTK also is a unique one with equal weighted NASDAQ fund which has been beating the rest?

Opinion on how much of the $53K to invest?

The $70K is the non retirement account with Merrill Edge.. Unless all hell breaks lose.. its for retirement... not planning to use it to buy a liability.

Thanks for the websites. My quick and dirty charts using averages shows we should get there.

Topic Author
Want.Need.Plan
Posts: 26
Joined: Sat Jun 27, 2020 6:56 pm

Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 10:59 pm

pkcrafter wrote:
Tue Jun 30, 2020 11:01 am
want need, an appropriate name indeed!

You've got a real mess here, but I just wanted to comment on the taxable account. It's a common approach for an advisor and it shows just how little they really care for their clients. You have several very tax-INefficient funds in there and the advisor knows this very well, but he'd rather snow you with lots of funds rather than a few good ones.The one and two percent holdings are also ridiculous! I guess he doesn't want to show how simple it really can be, but by putting on the big show he's increased your costs and made the taxable account unmanageable. :confused

We are glad you've come to Bogleheads to learn a much more effective, efficient, simpler, way to invest.

Paul
Everyone got wants and needs, but few have a plan.

Thanks for the comment!

Topic Author
Want.Need.Plan
Posts: 26
Joined: Sat Jun 27, 2020 6:56 pm

Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 11:08 pm

MathWizard wrote:
Tue Jun 30, 2020 11:58 am
I think your planning for $50K for expenses in retirement is low.
How did you arrive at that number?

You are currently spending $74K, and I assume that is after health insurance,
income tax withholding, flex benefits, retirement savings and FICA taxes withheld
by your employer. Retirement savings and FICA will no longer be needed, but
health insurance and flex benefits for health (flex 1) will be need to be part of
your expenses, and will no longer be pre-tax. You will have fewer expenses when the kids leave the nest, and the house is paid off, but we expect to spend $64K after health insurance and taxes, and we live in a Medium Cost of Living areas.

1) Health Ins is not typically considered by people, and it is a huge expenses
even after 65, much more of you plan to retire at 55.

I am allowed to stay on my very good employer's group plan which reduces
cost vs. a private plan. Also Medicare has its own premiums. I also include money we
are currently spending on health through flex 1. (You are using flex 2 for daycare
expenses is pre-tax money, correct?)

I estimate $18K/yr before 65 and $5.1K per person after 65 in today's dollars. I figure
everything in today's dollars with real (inflation-adjusted) investment returns. I do
figure 2% inflation in health costs above normal inflation, this based on a financial
advisor from TIAA-CREF.

I assume taking SS benefits at 70, with my wife taking her SS at FRA.

You also need to factor in taxes, including health ins and on the money you will
pay taxes on. I will have $13K in state and federal taxes before age 65, mostly due
to the high amount for health insurance, but also because the standard deduction goes
up a bit when you reach 65.

I think you are well on your way. Retiring at 55 might not be doable, but that depends on returns over the next decades. Each year before age 65 means you have one more
expensive year because of health care and lower SD, and one less year to save and let your portfolio grow. To retire 10 years before age 55 means you have to save a lot of money.

Thanks for you comment. You have a great point about healthcare, but luckly my HSA could fill that gap. Maxing $7100 a year over the next 24 years comes out to a conservative $410K using a 7% return... Healthcare costs of $18K a year is about 4% draw a year so it will still make money for me.

The 55 year goal is just that... I just am saving so i can walk out the front door if the job doesn't to it for me. Most likely will take up something else to stay busy to fill a bucket. But these are all good points to add into an analysis!

Topic Author
Want.Need.Plan
Posts: 26
Joined: Sat Jun 27, 2020 6:56 pm

Re: Do Not Go Gentle On Us!!! Personal Portfolio Suggestions Needed!!

Post by Want.Need.Plan » Tue Jun 30, 2020 11:18 pm

celia wrote:
Tue Jun 30, 2020 12:42 pm
Since you will be cleaning up this mess (after you fire the advisor(s) who did this to you), you might as well understand Tax-efficient Fund Placement which can help you save on taxes. Basically, you want all your Roths to contain the faster-growing assets (stock funds) so all that growth can be tax-free. Then you want all the bond funds in tax-deferred since there are no tax breaks on the interest they would generate if they were in taxable. That also controls the growth of the tax-deferred.

Here’s one way to clean it up. Write down your account names and the value in each. Then hide your statements so you aren’t influenced by what you already have. Write down your desired portfolio using your current values, taking into accout your level of risk and desired asset allocation. Lastly, figure out how you can get from where you are to where you want to be. The Roths and tax-deferred can be changed this year without any tax consequences. But the taxable might take a few years if you have gains to consider.


How are your insurance coverages? Hopefully you have an appropriate level of coverage on life and liability insurance.

You also need to address estate planning, if not yet done. I understand MA has a rather low estate tax exemption compared to other states. (Federal will be the same for all states.)
Thanks for the comment and link.. Great pointers wil go through that exercise.

Yes have Term of $1M and she has $500K. Also good auto insurance...not min insurance at all .. middle of the road if anything. in the plan to get umbrella insurance (dirt cheap) once investments hits a million. Earned it so will protect it.

Yes tough to die in MA. Estate planning is on deck in a decade or so. Tax professor best piece of advice was to buy a vacation home (even a shack) down in a tax friendly state... become a permanent resident there... now burden of proof is on the state taxing authorizes to prove where you lived...get the step up in basis for all assets to your heirs... and hopefully pass on the knowledge to continue the generational wealth.

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